Imation Reports Q4 Operating Loss

OAKDALE, Minn. -- Imation Corp. (NYSE:IMN) today released financial results for the fourth quarter and full year ended December 31, 2008.

Key points for Q4 2008 and fiscal year 2008 include the following:

Revenue of $549.2 million for the fourth quarter of 2008 was down 21.7 percent compared with revenue of $701.8 million for the fourth quarter of 2007. Net revenue for the year ended December 31, 2008 was $2,154.6 million, up 4.5 percent from revenue of $2,062.0 million for the year ended December 31, 2007.

Operating loss for the fourth quarter of 2008 was $50.8 million, including a goodwill impairment charge of $34.7 million and $9.9 million of restructuring and other charges. This is compared with an operating loss of $70.3 million in the fourth quarter of 2007, which included goodwill impairment charges of $94.1 million and $12.6 million of restructuring and other charges. Excluding these charges, the operating loss for the fourth quarter of 2008 was $6.2 million compared with operating income of $36.4 million on the same basis in the fourth quarter of 2007 (see table entitled Reconciliation of GAAP to Adjusted Non-GAAP Results below).

The Company posted a loss of $1.22 per diluted share for the fourth quarter of 2008, including a $0.86 per share negative impact from goodwill impairment and restructuring and other charges. This compares with a diluted loss per share of $1.91 for the fourth quarter of 2007. Excluding goodwill impairment and restructuring and other charges, the Non-GAAP diluted loss per share for the fourth quarter of 2008 would have been $0.36 compared with diluted earnings per share of $0.64 on the same basis in the fourth quarter of 2007 (see table entitled Reconciliation of GAAP to Adjusted Non-GAAP Results below).Total cash was $96.6 million with no debt outstanding as of December 31, 2008.

Commenting on the results, Imation President and CEO Frank Russomanno said, The significant economic slowdown has affected our results globally for both Q4 and the full year. In addition, the industry softness in storage media we saw earlier in the year continued to affect our results in the fourth quarter. As we indicated previously, our results also include significant charges for goodwill impairment and restructuring actions.”

Imation Corp.